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Well, here's the story that's been put out there.....a major law firm has the case. Not a shock. A major law firm always gets a major BK. Apparently, four entities declared bankruptcy. I'll skip the names because nobody knows who they are, what they do, etc., and how all the intricacies play out. I read the initial filing, which lists the 20 largest unsecured creditors. The total amount owed is listed at just under $38m (approximately). But an attorney who represents a major creditor told me that number is relatively meaningless as it's simply a starting point for the filing. Their liabilities are in excess of $50m (just to the bank and a second lien-holder alone).
So the story goes that CDI got a judgment of $1.5m, which is what caused the freezing of the bank accounts. Carey couldn't fund or prove he could fund the horsemen's purse account, and that lead to the license suspension. Add in the Fanatics nightmare, and that leads to lights out. None of this, not at this point, means nobody is getting paid. It just means they are not getting paid now. Sure, maybe they never get paid, but when liquidation occurs, debtors get the money. A financial advisory firm has been brought in to maximize the monies recovered for the bankruptcy estate.
Carey proposed a plan to stabilize, reorganize.....AN D SELL. Sure, he might be posturing and buying time, but the yes/no decision is not his. Moving forward, none of this is his decision. The plan involves bridge financing to resolve arrearages, securing the thoroughbred meet starting in March, and.....ready for this.....maintain ing the rights and contingent casino license! The plan also calls for vendor payments specifically designed to get the simulcast streams/feeds going again. The filing reports between $50m to $100m in assets.....and between $100m and $500m in liabilities!
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